pressure from agents to sell at auction....working class suburbia ....any thoughts

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suavemechanic
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@suavemechanic
Join Date: 2004
Post Count: 106
February 1, 2010 - 10:55 pm
hi ,
we need to sell a property so i have been agent shopping
so far they are amazingly disinterested in the actual property , our plans to remove the tennants and their dogs and abandoned cars etc
and refuse to be drawn into even the subject of price
however on the subject of auctions they really get warmed up !
yesterdays agent ( 45 mins late ,no call ) did make a point that due to the global financial thingo
a lot of finance applications are falling over .tying up the property at our expense for weeks
my feeling is if i get the price right it will sell in the first weekend , and as its just an ordinary ,livable house in a working class area
finding some first home buyers shouldnt be too difficult,getting them into a bidding war with unlimited funds seems a bit too hollywood
any thoughts ?
duckster
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@duckster
Join Date: 2004
Post Count: 1,674
February 2, 2010 - 12:43 am
An Auction works against the seller. If you set a reserve price make sure the agent doesn't talk you into lowering it during an auction.
In the heat of the moment it is real easy to get sucked in to lowering you reserve price. You can always negoitiate with the highest bidder later if the house is passed in at auction. You can also get stung with $10,000 worth of advertising by the agents which you do not really need.
If the market is slow you suffer
If the market is hot the buyers can end up paying more .
I have not sold by auction myself but in some suburbs they sell only by auction especially during a hot market.
The sale can fall through with an auction .
If the bank lowers the valuation for the buyers loan then they may not be able to buy it.